What does it take for business startups to succeed?

This interesting infographic by Paychex gives great insight into the survival rates for business startups.    This information might surprise you in more ways than you think. For example, how many startups succeed?  The answer is only 56% of startups make it past four years.      Most business startups are founded by people in the ages of 22 and 44 with college education are most likely to start a business.   And what about women founders?   Currently they account for 22% of startups.

9 Tips for your business startup to succeed

In America, large corporations continue to downsize, but since 1982 startups have increased by 49%, and that deletes all the ones that didn’t make it past four years.    With the trend of college graduates continuing to be under-employed, now, more than ever, they are turning to entrepreneurship to help them turn their education into a rewarding startup business.   So what does it take to succeed?   Here are our our tips:

1. Make sure you are passionate about the product/service for your business startup.
2. Before you launch a business, do your homework on your target market and competition and what makes your product/service unique.
3. Prepare a business plan and include financials, including a cash flow statement for the first year.
4. Raise enough cash through bootstrapping and other means to float yourself for at least one year.
5. Make sure you are organized from top to bottom before you start
6. Hire a web designer to create a great website for your startup that automatically resizes for smart phones and tablets.     Don’t skimp on this step.
7. Look at your financials every month to see how you are progressing.    The profit and loss statement is the story behind your business.    Make sure you understand the numbers.   If you need help, contact your accountant/bookkeeper.    A good professional will be able to explain your financials to you in easy to understand language.
8. Squirrel away your profits in the first year, until your startup is on a sound financial footing.
9. Have fun!